Correlation Between EgnsINVEST Ejendomme and BankIn Bredygt
Can any of the company-specific risk be diversified away by investing in both EgnsINVEST Ejendomme and BankIn Bredygt at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining EgnsINVEST Ejendomme and BankIn Bredygt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EgnsINVEST Ejendomme Tyskland and BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on EgnsINVEST Ejendomme and BankIn Bredygt and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in EgnsINVEST Ejendomme with a short position of BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of EgnsINVEST Ejendomme and BankIn Bredygt.
Diversification Opportunities for EgnsINVEST Ejendomme and BankIn Bredygt
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between EgnsINVEST and BankIn is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding EgnsINVEST Ejendomme Tyskland and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt and EgnsINVEST Ejendomme is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on EgnsINVEST Ejendomme Tyskland are associated (or correlated) with BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of EgnsINVEST Ejendomme i.e., EgnsINVEST Ejendomme and BankIn Bredygt go up and down completely randomly.
Pair Corralation between EgnsINVEST Ejendomme and BankIn Bredygt
Assuming the 90 days trading horizon EgnsINVEST Ejendomme Tyskland is expected to under-perform the BankIn Bredygt. In addition to that, EgnsINVEST Ejendomme is 1.14 times more volatile than BankIn Bredygt Klimaakt. It trades about -0.07 of its total potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.13 per unit of volatility. If you would invest 10,085 in BankIn Bredygt Klimaakt on September 12, 2024 and sell it today you would earn a total of 725.00 from holding BankIn Bredygt Klimaakt or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
EgnsINVEST Ejendomme Tyskland vs. BankIn Bredygt Klimaakt
Performance |
| Timeline |
| EgnsINVEST Ejendomme |
| BankIn Bredygt Klimaakt |
EgnsINVEST Ejendomme and BankIn Bredygt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EgnsINVEST Ejendomme and BankIn Bredygt
The main advantage of trading using opposite EgnsINVEST Ejendomme and BankIn Bredygt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EgnsINVEST Ejendomme position performs unexpectedly, BankIn Bredygt can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BankIn Bredygt will offset losses from the drop in BankIn Bredygt's long position.| EgnsINVEST Ejendomme vs. Vestjysk Bank AS | EgnsINVEST Ejendomme vs. PARKEN Sport Entertainment | EgnsINVEST Ejendomme vs. Strategic Investments AS | EgnsINVEST Ejendomme vs. BankIn Bredygt Klimaakt |
| BankIn Bredygt vs. Lollands Bank | BankIn Bredygt vs. Carnegie Wealth Management | BankIn Bredygt vs. Nordfyns Bank AS | BankIn Bredygt vs. Laan Spar Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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